Have you heard about the biotech startup pitching a telecommunications-focused VC firm? No? That’s because illustrates a huge problem in the startup funding world: Entrepreneurs pitching without preparation.
In my first hand experience, Venture capitalists disqualify about 90 percent of all incoming dealflow. The reason: A lack of fit between the VC’s wheelhouse and the opportunity itself.
Whenever I spend time mentoring the portfolio at Ryerson Futures, where I’m a partner, I remind our entrepreneurs that they need to spend less time pitching their deal, and more time selecting whom to pitch. Founders often (incorrectly) see funding as numbers game, and simply want to pitch to anyone (and everyone) who will listen.